Downtown Arena Financing Unravels

by Gabe Bullard on July 24, 2008

Financing for Louisville’s downtown arena has been put on hold.

This week, Moody’s credit ranking agency put the arena’s bonds issuer on credit watch – meaning it’s credit rating could be downgraded at anytime. Now, that downgrade seems likely and the sale of $360 million in bonds will be put on hold while new financing options are developed.

Mayor’s spokesperson Chris Poynter says those new options do not involve the sale of bonds.

“It can include everything from a construction loan, a short-term construction loan or even a potential line of credit that would be, you know, a line of credit for a few years that we could eventually roll into permanent financing once the markets stabilize,” he says.

The city is buying back fixed rate bonds it sold for the project last week. Officials from the city and the arena authority will meet with banks on Tuesday to explore other options.